27th May 2008 07:00
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Press Release |
27 May 2008 |
Aricom plc ("Aricom", "the Company", or "the Group")
Aricom appoints Morgan Stanley as Financial Adviser for financing further development at the K&S and Garinskoye projects
Aricom plc (LSE:ORE, OREW) is pleased to announce it has mandated Morgan Stanley as financial adviser for the funding of construction and development for the K&S and Garinskoye iron ore projects.
Following its successful equity capital raising in June 2007, Aricom estimates that subject to completion of full feasibility studies on both projects, the external finance requirement will be in excess of US$1bn, as previously indicated. The Morgan Stanley team are mandated to provide advice on financing from a variety of possible sources including: traditional bank provided project finance; access to the debt capital markets; equipment and/or technology partner finance; and the possibility for the involvement of a long term strategic project partner.
Jay Hambro, Chief Executive of Aricom, commented:
"The appointment of Morgan Stanley represents a key step in the ongoing development of our business. The K&S and Garinskoye projects are forecast to generate significant annual cash flow which will enable them to support the required debt programme. We also continue to review the possibility of inviting a strategic partner into one of the projects should it bring significant value."
Peter Bacchus, Head of International Metals & Mining at Morgan Stanley, commented:
"We are delighted to have been appointed to provide financial advice to Aricom. The company is well positioned for growth in an attractive market, and we look forward to working closely with senior management to ensure the company realises its full potential."
For further information:
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Aricom plc |
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Charlie Gordon, Investor Relations Officer |
Tel: +44 (0) 20 7201 8939 |
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www.aricom.plc.uk |
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Abchurch |
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Charlie Jack/ George Parker |
Tel: +44 (0) 20 7398 7700 |
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www.abchurch-group.com |
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